The Australian share market closed higher on Thursday as demand for resources and banks lifted the local bourse, while the local currency approached parity with the US dollar. The benchmark S&P/ASX200 index was up 79.2 points, or 1.71 per cent, at 4,699.1 points, while the broader All Ordinaries index was 74.8 points higher, or 1.59 per cent, at 4765.9 points. On the Sydney Futures Exchange, the December share price index contract was 74 points higher at 4,710 points, with 29,487 contracts traded. On the S&P/ASX 50 index, seven stocks ended higher for every company fall on Thursday. The blue chip Dow Jones industrial average closed 0.69 per cent higher, while the broader S&P 500 index rose 0.71 per cent. On Thursday, the Australian dollar reached 99.81 US cents, the currency's highest level since its float on December 12, 1983. The major miners closed stronger, with Rio Tinto a standout. The mining giant said on Thursday it had produced record amounts of iron ore, alumina and coking coal in the September quarter. Rio finished up $3.46, or 4.40 per cent, to $82.08. Rival BHP Billiton closed up 84 cents at $41.66, while Fortescue Metals Group ended up eight cents at $6.38.

During Wednesday's offshore session, gold received a boost on worries over currency depreciation after the US central bank signalled it will resume buying government debt to stimulate the American economy. The spot price of gold in Sydney was $1,379.80 per fine ounce, up $24.32 from Wednesday's local close of $1,355.48. Gold miner Newcrest Mining was up $1.34, or 3.25 per cent, at $42.52. All big four banks were stronger on Thursday, with the Westpac the best performer. Westpac added 56 cents, or 2.48 per cent, to $23.11, CBA closed up $1.18 to $51.20, ANZ was 37 cents higher at $24.00, and National Australia Bank was up 47 cents to $25.68.

In market news on Thursday, Bank of Queensland reported a 27 per cent rise in annual net profit and predicted higher growth in the current year. Bank of Queensland said net profit was $179.6 million in 2009/10. Shares in Bank of Queensland closed down 12 cents, or 1.14 per cent, at $10.40. Northern Energy Corporation rejected an unsolicited takeover offer from New Hope Corporation, saying the offer materially undervalues the company. Northern Energy said New Hope's offer of $1.50 per share, which values the target at $193 million, was highly opportunistic. Shares in New Hope ended up one cent at $5.30, while Northern Energy was up one cent at $1.585. The most traded stock by volume was Jervois Mining, with 115.62 million shares worth $573,328 changing hands. Shares in the minerals explorer were up 0.1 cents, or 25 per cent, at 0.5 cents. Preliminary market turnover was 2.86 billion securities worth $5.99 billion, with 730 stocks up, 434 down and 355 unchanged.

The Australian dollar surged in Asian trade Thursday and was recently closer to U.S. dollar parity than it has been since the currency was floated in 1983. Helping the Australian dollar, as well as a host of other Asian currencies, was Singapore's surprising decision to tighten monetary policy, which fueled another leg higher for the Australian dollar after a better than expected earnings report from JPMorgan lifted the stock market and riskier assets in general overnight. The Australian dollar was recently at $0.9950 just off its post float high of $0.9982 hit in early afternoon trading but above the $0.9870 it traded at late Wednesday. The Australian dollar traded against the Yen at 80.765, from 80.66 late Wednesday.